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WHAT IS ECONOMICS??
WHAT IS ECONOMICS?? 
โ— ECONOMICS IS THE 
STUDY OF HOW 
PEOPLE USE 
RESOURCES TO 
SURVIVE AND TO 
SATISFY THEIR 
NEEDS AND 
WANTS
3 BASIC ECONOMIC QUESTIONS 
โ— A SOCIETY 
MUST 
ANSWER 
THREE BASIC 
ECONOMIC 
QUESTIONS.
1ST ECONOMIC QUESTION 
โ— WHAT 
GOODS AND 
SERVICES 
SHOULD BE 
PRODUCE? 
(RESOURCES)
2ND ECONOMIC QUESTION 
โ— HOW TO 
PRODUCE 
THE GOODS 
AND 
SERVICES? 
(PRODUCERS)
3RD ECONOMIC QUESTION 
โ— WHO GETS 
THE GOODS 
AND 
SERVICES 
PRODUCED? 
(HOUSEHOLDS)
CASH ECONOMY 
โ— IN A CASH 
ECONOMY 
INCOME 
DETERMINES 
THE GOODS 
AND SERVICES 
A CONSUMER 
CAN BUY
FREE ENTERPRISE 
โ— THE U.S. HAS A FREE 
ENTERPRISE SYSTEM 
โ— A FREE ENTERPRISE 
SYSTEM OFFERS 
SEVERAL BENEFITS, 
โ— ALSO THE 
GOVERNMENT PLAYS 
A LIMITED ROLE IN 
FREE ENTERPRISE
BENEFITS OF FREE ENTERPRISE 
โ— GIVES CONSUMERS 
FREE CHOICE 
โ— ENCOURAGES 
COMPETITION OR 
BEST PRODUCT AT 
LOWEST PRICE 
โ— SUPPORTS PRIVATE 
OWNERSHIP 
โ— ENCOURAGES 
INVENTION AND 
INVESTMENT
WHAT ARE VALUES??? 
Values strongly influence our 
spending habits. We donโ€™t usually 
spend our money on things we do 
not feel are important. Typically, 
the more important something is, 
the more we are willing to spend 
on it.
Values 
โ–ช Family 
โ–ช Friends 
โ–ช Work 
โ–ช Honesty 
โ–ช Self Reliance 
โ–ช Independence 
โ–ช Religion 
โ–ช The beliefs and 
practices in your 
life that are very 
important to you.
WHAT IS SCARCITY??? 
โ€œScarcity is an economic principle 
stating that because of limited 
resources, an economic system 
cannot possibly produce all the 
goods and services that people want; 
therefore, choices must be made 
about how the limited resources will 
be used.โ€
NEEDS vs WANTS 
โ–ช NEEDS 
โ–ช Essentialsโ€ฆthe 
basics of life 
โ–ช Food 
โ–ช Clothing 
โ–ช Shelter
NEEDS vs WANTS 
โ–ช WANTS 
โ–ช Simply increase the 
quality of living
ALMOST FINISHED 
โ— WHAT IS SCARCITY? 
โ— WHAT ARE NEEDS? 
โ— WHAT ARE WANTS? 
โ— WHAT ARE VALUES? 
โ— NAME TWO THINGS THAT 
INFLUENCE YOUR VALUES
CAN YOU ANSWER THESE 
QUESTIONS??? 
โ— WHAT ARE THE THREE BASIC ECONOMIC 
QUESTIONS EVERY SOCIETY MUST 
ANSWER? 
โ— WHAT ARE TWO BENEFITS THAT A FREE 
ENTERPRISE SYSTEM OFFERS TO 
CONSUMERS? 
โ— WHAT ARE THE BASIC NEEDS?

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WHAT IS ECONOMICS?

  • 2. WHAT IS ECONOMICS?? โ— ECONOMICS IS THE STUDY OF HOW PEOPLE USE RESOURCES TO SURVIVE AND TO SATISFY THEIR NEEDS AND WANTS
  • 3. 3 BASIC ECONOMIC QUESTIONS โ— A SOCIETY MUST ANSWER THREE BASIC ECONOMIC QUESTIONS.
  • 4. 1ST ECONOMIC QUESTION โ— WHAT GOODS AND SERVICES SHOULD BE PRODUCE? (RESOURCES)
  • 5. 2ND ECONOMIC QUESTION โ— HOW TO PRODUCE THE GOODS AND SERVICES? (PRODUCERS)
  • 6. 3RD ECONOMIC QUESTION โ— WHO GETS THE GOODS AND SERVICES PRODUCED? (HOUSEHOLDS)
  • 7. CASH ECONOMY โ— IN A CASH ECONOMY INCOME DETERMINES THE GOODS AND SERVICES A CONSUMER CAN BUY
  • 8. FREE ENTERPRISE โ— THE U.S. HAS A FREE ENTERPRISE SYSTEM โ— A FREE ENTERPRISE SYSTEM OFFERS SEVERAL BENEFITS, โ— ALSO THE GOVERNMENT PLAYS A LIMITED ROLE IN FREE ENTERPRISE
  • 9. BENEFITS OF FREE ENTERPRISE โ— GIVES CONSUMERS FREE CHOICE โ— ENCOURAGES COMPETITION OR BEST PRODUCT AT LOWEST PRICE โ— SUPPORTS PRIVATE OWNERSHIP โ— ENCOURAGES INVENTION AND INVESTMENT
  • 10. WHAT ARE VALUES??? Values strongly influence our spending habits. We donโ€™t usually spend our money on things we do not feel are important. Typically, the more important something is, the more we are willing to spend on it.
  • 11. Values โ–ช Family โ–ช Friends โ–ช Work โ–ช Honesty โ–ช Self Reliance โ–ช Independence โ–ช Religion โ–ช The beliefs and practices in your life that are very important to you.
  • 12.
  • 13. WHAT IS SCARCITY??? โ€œScarcity is an economic principle stating that because of limited resources, an economic system cannot possibly produce all the goods and services that people want; therefore, choices must be made about how the limited resources will be used.โ€
  • 14. NEEDS vs WANTS โ–ช NEEDS โ–ช Essentialsโ€ฆthe basics of life โ–ช Food โ–ช Clothing โ–ช Shelter
  • 15. NEEDS vs WANTS โ–ช WANTS โ–ช Simply increase the quality of living
  • 16. ALMOST FINISHED โ— WHAT IS SCARCITY? โ— WHAT ARE NEEDS? โ— WHAT ARE WANTS? โ— WHAT ARE VALUES? โ— NAME TWO THINGS THAT INFLUENCE YOUR VALUES
  • 17. CAN YOU ANSWER THESE QUESTIONS??? โ— WHAT ARE THE THREE BASIC ECONOMIC QUESTIONS EVERY SOCIETY MUST ANSWER? โ— WHAT ARE TWO BENEFITS THAT A FREE ENTERPRISE SYSTEM OFFERS TO CONSUMERS? โ— WHAT ARE THE BASIC NEEDS?